The FHSA and the Home Buyers' Plan

The First Home Savings Account

An FHSA is a registered account for first-time buyers. Contributions are generally tax-deductible, growth inside the account isn't taxed, and qualifying withdrawals to buy a first home are tax-free. Unlike the HBP, money withdrawn for a qualifying purchase doesn't have to be paid back.

Contribution limits and lifetime limits apply: [PLACEHOLDER: current FHSA annual and lifetime limits and carry-forward rules]. Eligibility rules define who counts as a first-time buyer.

The Home Buyers' Plan

The HBP lets eligible buyers withdraw from their RRSP to buy or build a qualifying home without paying tax on the withdrawal at the time. The amount must be repaid to your RRSP over a set period, and missed repayments are added to your taxable income.

Withdrawal limits and repayment rules: [PLACEHOLDER: current HBP withdrawal limit and repayment schedule].

Using both

Eligible buyers can generally use the FHSA and the HBP for the same purchase, which can significantly boost a down payment. Couples buying together may each be able to use their own accounts. Timing matters: there are rules about how long funds must be in an RRSP before an HBP withdrawal, and documentation is required.

How it fits your mortgage

Lenders need to see where your down payment comes from. Statements from your FHSA and RRSP, along with confirmation of withdrawals, are typically part of the file. Our brokers can help you plan the timing so funds are ready for closing. For tax advice, speak with a qualified tax professional.

Planning ahead

Because these programs have annual limits and timing rules, starting early usually helps. Opening an FHSA as soon as you're eligible can let contribution room build. If you're also saving in an RRSP, talk with your adviser about which account to fund first based on your income and timeline.

Keep statements for every account you'll draw from. When you apply for a mortgage, lenders typically want to see a history of the funds, not just a balance on the day you apply. A clean paper trail makes approval smoother.

How our brokers can help

Active Mortgage is a team of brokers working with a range of lenders. We can review your situation, explain the options that apply to you and compare real offers side by side. There's no cost to talk with us, and you're never under pressure to proceed.